Plastics - the facts 2014/2015

Plastics – the Facts 2014/2015 An analysis of European plastics production, demand and waste data

1

Plastics – the Facts is an analysis of the data related to the production, demand and waste management of plastics materials. It provides the latest business information on production and demand, trade, recovery as well as employment and turnover in the plastics industry. In short, this report gives an insight into the industry’s contribution to European economic growth and prosperity throughout the life cycle of the material.

The data presented in this report was collected by PlasticsEurope (the Association of Plastics Manufacturers in Europe) and EPRO (the European Association of Plastics Recycling and Recovery Organisations). PlasticsEurope’s Market Research and Statistics Group (PEMRG) provided input on the production of and demand for plastics raw materials. Consultic Marketing & Industrieberatung GmbH helped assess waste generation and recovery data. Official statistics from European or national authorities and waste management organisations have been used for recovery and trade data, where available. Research or expertise from consultants completed gaps.

Figures cannot always be directly compared with those of previous years due to changes in estimates.

Some estimates from previous years have been revised in order to track progress, e.g. for use and recovery of plastics across Europe over the past decade.

All figures and graphs in this report show data for EU-27 plus Norway and Switzerland, which is referred to as Europe for the purposes of abbreviation – other country groups are explicitly listed.

2

Plastics – the material for the 21st century

3

For the last 150 years, plastics materials have been key enablers for innovation and have contributed to the development and progress of society.

Discover how plastics have changed the world.

www.plasticseurope.org 4

Key figures of the European plastics industry The European plastics industry includes plastics raw material producers, plastics converters and plastics machinery manufacturers in the EU27 member States.

Jobs The plastics industry gives direct employment to over

Companies An industry in which more than

The European plastics industry had a turnover of

companies

euro 320 billion in 2013

60.000

1.45 million

operate, most of them SME’s

people in Europe

Multiplier effect The European plastics industry has a multiplier effect

of 2.4 in GDP

and almost 3 in jobs *

Turnover

Innovation The plastics sector is part of the most innovative sector in the EU representing 1 in 25 patents submitted by the industry between 2003 and 2012

top 5

Recycling More million tonnes than of plastics waste recycled in 2012

6.6

Š

* 2013, The European House Ambrosetti study, data for Italy, 2013

5

Plastics: jobs, growth and competitiveness

6

The European plastics industry: a pillar of economics and society bn € 250 212

Turnover (bn €)

200 150

Plastics manufacturers 99

100

Plastics converters

Development of sales in EU-27 (2007 – 2013)

50 year

0 2007

2008

2009

2010

2011

Plastics manufacturers

134.000 employees 1

2012

Source: Eurostat

2013

Plastics converters

1.267.000 1 employees

Number of employees in 2013

Contribution to EU society Estimated data for EU-27 (excl. NO/CH), 2013

Source: 1. Eurostat.

Tax and social security costs Corporate tax

~ 26.3 bn €

An industry generating about 26.3 billion euro for public finance and welfare.

7

Plastics are a source of jobs, growth, innovation and sustainability The growth of the plastics industry has a multiplier effect on numerous important sectors of the European economy.

The plastics industry is a key enabler of innovation of many products and technologies in other sectors of the economy like healthcare, energy generation, aerospace, automotive, maritime, construction, electronics, packaging or textile.

None of these sector would innovate and grow as much as they do without plastic materials and solutions.

Innovation and growth in Europe depend on manufacturing, in particular the plastics industry. A study led in 2013 by leading Italian think tank “The European House Ambrosetti” reveals the “multiplier effect” of the plastics industry:

Moreover, the unique characteristics of plastics also allow them to make a strong contribution to a more environmentally sustainable and resource efficient Europe. Lightweight, versatile and durable plastics contribute to energy and resource savings in strategic sectors like retail, construction, healthcare, automotive or renewable energies. In addition, significant advances are also being made in the environmental performance of plastics in their production and end-of-life phases, hence contributing to the sustainability of European indsutries and societies.

the multiplier effect of plastics for society and the economy

• It is in one of the sectors that provides the greatest contribution to EU manufacturing • A 10% increase in the value added of the European plastics sector could lead to a 4.4% increase in the value added to the overall EU manufacturing sector.

AEROSPACE

AUTOMOTIVE RENEWABLE energy

Plastics

And at national level for Italy:

TEXT

g Packagin

• For every job created in the plastics sector, almost 3 jobs are created in the wider economy • A 100€ increase in GDP in the national plastics supply chain generates 238€ of GDP in the national economy

N

RUCTIO

CONST

ILE

cs

oni

HEALTHCARE

ctr

Ele

8

Global competitiveness challenges of the European plastics industry China is the world leader in plastics production and conversion. Low production costs in plastics’ conversion have triggered investments in the plastics industry, including the plastics machinery manufacturing.

Low energy costs due to non-conventional fuels. The rate of shale gas in the US energy production is expected to grow from current 10% to 36% by 2035.

67% of the world’s oil reserves and 45% of the world gas reserves are located in the Middle East.

One-third of the bio-plastics are produced in Latin America. Access to bio based feedstock provides opportunities for the Brazilian bio-plastics industry.

Source: based on The European House Ambrosetti study, 2013

Feedstock provides opportunities for the plastics industry there.

Strong growth in plastics conversion sector (more than 22.000 companies and 4 million employees).

Key drivers are the growing population and the growth of manufacturing sectors such as the automotive sector.

Forward integration of plastics processing industry. is on-going.

9

Plastics market data

10

Plastics production grows globally and is stable in Europe

56

65

2002 2007

55

58

57

57

2009 2011 2012 2013

EUROPEAN PLASTICS PRODUCTION in Mtonne

204 2002

257

250

279

288

299

2007

2009

2011

2012

2013

WORLD PLASTICS PRODUCTION in Mtonne

World and European plastics production 2002-2013 Includes Plastics materials (thermoplastics and polyurethanes), other plastics (thermosets, adhesives, coatings and sealants) and PP-fibers.

Source: PlasticsEurope (PEMRG) / Consultic

With continuous growth for more than 50 years, global production in 2013 rose to 299 million tonnes, meaning a 3.9% increase compared to 2012.

In Europe, the plastic production stabilised in 2013 after the 2009 turn-down. Actual levels are similar to those in 2002.

11

Europe ranks second in the global plastics materials production Europe (EU27 + CH + NO)

20%

CIS

2.9%

24.8% NAFTA 19.4%

China

PRODUCTION OF PLASTICS MATERIALS BY REGIONS

250 Mtonne

Latin America

4.4% Japan

4.8% 7.3% Middle East, Africa

16.4% Rest of Asia

2013 World production of plastics materials (thermoplastics and polyurethanes) Does not include other plastics (thermosets, adhesives, coatings and sealants) nor PP-fibers.

Source: PlasticsEurope (PEMRG) / Consultic 12

A positive trade balance of 18 billion euros Plastics manufacturing extra-EU

Plastics processing Extra-EU

Mioâ‚Ź

Mioâ‚Ź

30,000

14,000

25,000

12,000 10,000

20,000

8,000 15,000 6,000 10,000 4,000 5,000 0

2,000

2007 2008 2009 2010

2011

2012

2013

year

0

2007 2008 2009 2010

2011

2012

2013

year

Extra-EU27 Imports Extra-EU27 Exports Trade balance

EU-27 plastics industry: trade balance with non-EU member countries (Extra-EU)

Exports Extra EU27

Source: Eurostat

Imports Extra EU27

2013 top trade partners Source: Eurostat

Plastics manufacturing

Plastics processing

1. Turkey (14.3%)

1. USA (12.6%)

2. China (11.8%)

2. Russia (11.4%)

3. USA (10.3%)

3. Switzerland (11.3%)

4. Russia (8.5%)

4. China (7.7%)

5. Switzerland (6.3%)

5. Turkey (5.7%)

1. USA (23.9%)

1. USA (21.7%)

2. Saudi Arabia (15.8%)

2. Switzerland (15.5%)

3. South Korea (10.4%)

3. China (12.8%)

4. Switzerland (6.7%)

4. Turkey (10.7%)

5. Japan (5.7%)

5. Japan (6.6%)

13

Two thirds of plastics demand in Europe is concentrated in five countries Germany Italy France

Italy

United Kingdom Spain Poland Belgium & Lux.

France

14.3%

Netherlands

9.7%

Czech Republic

Germany

Austria Sweden

25.4%

Portugal

Plastics demand in Europe

Switzerland Hungary Romania

7.6%

46.3 Mtonne

Greece

7.5%

Finland

UK

Spain

Denmark Slovakia Bulgaria Ireland Norway

35.5%

Others

Slovenia Lithuania Latvia Estonia Cyprus / Malta

Mtonne

0

1

2

3

4

5

6

7

8

9

10

2012

2011

11

12

European plastics demand by country (Mtonne/year) Source: PlasticsEurope (PEMRG) / Consultic / ECEBD

2013

14

Plastics provide for a wide variety of markets In Europe, packaging applications are the largest application sector for the plastics industry and represent 39.6% of the total plastics demand.

Others (include sectors such as consumer and household appliances, furniture, sport, health and safety)

Building and construction is the second largest application sector with 20.3% of the total European demand.

21.7%

Automotive is the third sector with a share of 8.5% of the total demand.

Electrical and electronic applications represent 5.6% of the plastics demand and are closely followed by agricultural applications which have a share of 4.3%.

Other application sectors such as appliances, household and consumer products, furniture and medical products comprise a total of 21.7% of the European plastics demand.

39.6% Agriculture

46.3 Mtonne

4.3%

Packaging

5.6%

Electrical & Electronics

8.5% 20.3% Automotive

Building & Construction

European plastics demand* by segment 2013 Source: PlasticsEurope (PEMRG) / Consultic / ECEBD * EU-27+NO/CH

15

Different plastics for different needs PE-LLD wire cables

PP car bumpers

Most yoghurt pots are made of PS

PE-LD reusable bags Film for food packaging PVC boots

PVC window frames

Office/school PP folders

PE-LD, PE-LLD

PE-HD milk bottles

PVC

PS plastic cups

PUR sponges

PP flowerpot

PP

PUR insulation panels

PS glasses frames

PS, PS-E

PUR

Polycarbonate fridge trays ABS bricks

PE-HD toys

PE-HD Others PET PET bottles

PTFE (Teflon coated) pans

European plastics demand* by polymer type 2013 Source: PlasticsEurope (PEMRG) / Consultic / ECEBD * EU-27+NO/CH

16

European plastics demand increased by 1% in 2013 PP PE-LD, PE-LLD PE-HD, PE-MD Others PVC PUR PET

European plastics demand

PS PS-E PA

46.3 Mtonne

Other ETP ABS, SAN PC PMMA

Mtonne 1

2

3

4

European plastics demand* by polymer type Source: PlasticsEurope (PEMRG) / Consultic / ECEBD * EU-27+NO/CH

5

6

7

8

2013

2012

9

10

2011

17

Packaging, building & construction and automotive are the top three markets for plastics

Packaging

39.6%

Building & Construction

20.3%

Automotive

8.5%

Electrical & Electronic

5.6%

26.0%

PU R

Ot h En er g.

PC

PA

A PM M

SA N

PE T

AS A, S, AB

PV C

E PS -

PS

PP

D PE -H

PE -L

D, P

EL

LD

Others

European plastics demand* by segment and polymer type 2013 Source: PlasticsEurope (PEMRG) / Consultic / ECEBD * EU-27+NO/CH

18

Waste management data

19

In 2012 plastics recycling and energy recovery reached 62% In 2012, 25.2 million tonnes of post-consumer plastics waste ended up in the waste upstream.

62% was recovered through recycling and energy recovery processes while 38% still went to landfill.

Energy recovery

Recycling

26%

25 Mtonne of postconsumer plastics waste

36%

38%

Landfill Treatment for post-consumer plastics waste in the EU27+Norway and Switzerland Source: Consultic

20

Since 2006 recycling and energy recovery have increased‌ The annual average of post-consumer plastics waste generation from 2006 to 2012 is 25 Mtonne.

Mtonne 15

Landfill

-26%

12,9

Energy recovery

9,6 10

+27%

8,9 7,0

6,6 Recycling

+40%

4,7 5

year

0 2006

2007

2008

2009

2010

2011

2012

Total plastics waste recycling and recovery 2006 – 2012 Source: Consultic

21

‌ but landfilling is still the 1st option in many EU countries Plastics waste going to landfill (2012)

2016 2009

2005

Above 66% 2014 Scotland

>50% to 66%

33% to 50%

1999 + 2006

1997

1996

below 10% i.e. landfill ban

2016 2005

2004 2006

Date of landfill ban in force

2016

Date of future landfill ban

2006

Source: Consultic

22

Zero plastics to landfill, a challenging but worthwhile goal

Plastics waste going to landfill in Europe Mtonne

16

Decrease from 2005-2012 (-26%)

14

Trend-line (extrapolation) Zero plastics to landfill by 2025 scenario

12 10 8 6 4 2 0 2005

2010

2012

2025

2030

2037

= 60 million tonnes of plastics prevented from landfill, equivalent to over 750 million barrels of oil or 60 billion euros 23

Countries with landfill ban

In general, countries with landfill ban achieve higher recycling rates Switzerland Germany Austria Luxembourg Belgium Denmark Sweden Netherlands Norway Finland France Estonia Ireland Slovakia Italy Slovenia Czech Republic Portugal Spain Hungary Poland Romania UK Latvia Bulgaria Greece Lithuania Cyprus Malta

0%

10%

20%

30%

40%

50%

Treatment of post-consumer plastics waste 2012 (EU-27 + CH/NO) Source: Consultic

60%

70%

80%

90%

100%

Recycling rate Energy recovery rate Landfill rate 24

Plastics waste is a resource ...out of which new plastic products are made

The energy value of plastics is used to produce electricity, heating and cooling for millions of homes

Alternatively plastics are used as fuel for industrial processes, replacing fossil fuel

...processed into granulates

energy recovery

recycling is the preferred option

is needed to end the landfilling of plastics

Emissions are subject to strict regulations and control standards Plastics are sorted and crushed into “flakes�, washed, dried and sorted again...

million 9.6 tonnes

of plastics waste are landfilled every year in Europe

Those plastics which cannot be sustainably recycled can be used in efficient Waste-to-Energy facilities to produce electricity and heat

16-19

million

more citizens potentially supplied with energy recovered from plastics waste

41%

of plastics packaging was recycled in Germany in 2013 (based on input)

25

Plastics recycling and energy recovery complement each other Changes in recycling and energy recovery rates by country Estonia Finland Ireland Slovenia Romania* Poland Portugal Greece Slovakia Hungary Lithuania Czech Republic Bulgaria* Luxembourg Germany Norway Spain Cyprus Latvia Netherlands Belgium Italy France Austria UK Malta Sweden Switzerland Denmark

-20%

-10%

0%

Source: Consultic * For Bulgaria & Romania: comparison 2012 vs. 2007

10%

20%

30%

40%

Comparison of rates 2012 vs. 2006

Energy recovery rate

Referred to post-consumer plastics

Recycling rate

50%

26

Plastics packaging has the highest recycling and energy recovery rates Austria Luxembourg Germany Switzerland Denmark Sweden Belgium Netherlands Norway Finland Estonia Italy Czech Republic Slovenia Slovakia France Poland Ireland Romania Hungary Spain Portugal Latvia Bulgaria Lithuania UK Greece Cyprus Malta

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Packaging recycling and energy recovery rate by country 2012

Recycling rate

(Referred to post-consumer plastics waste) Source: Consultic

Energy recovery rate 27

Life cycle of a plastic bottle: recycling options

D 0

H

H

0

C

C H

H

0

H

H

C

C

H

H

0

n

Crude oil components are separated through distillation.

Plastic’s major raw material is called naphta.

Smaller molecules result from naphtha cracking, i.e. ethene, propene and butane.

These short molecules (monomers) are particularly reactive, tie together and form long molecular chains (polymers).

T

The cross linking of the polymer chains determine their ductility: Thermoplastic (T) – Duroplast (D)

Plastic pellets are heated into a viscous substance which is blown and stretched into a mould. The mould must be cooled to set the plastic in (a bottle) shape.

Pre-selection of PET bottles

PET bottle Polyethylene Terephthalate is nowadays the major polyester type

Optoelectronic colour separation

Thermoformed films

Extruder processes flakes into granules

Automatic colour separation of flakes for further processing

Optoelectronic colour selection

Material separation by density + drying process

Washing

Crushing into so-called flakes

Fibres production Recycled PET is the raw material which is used to produce fleece pullovers

20% of the recycled material goes into the production of new bottles

28

Snapshot and outlook

29

In 2014 plastics production is still below pre-crisis level Production index (2010=100, trend cycle & seasonally adjusted data) Index 140

130

120

110

100

90

80

70

60

50

year

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Plastics manufacturing

Plastics machinery

Plastics processing

Plastics industry production in EU-27 Source: Eurostat

30

For 2015: plastics production is expected to have a very slight increase Production of primary plastics, EU-28 Index 2010=100 on a quarterly basis; annual average Index

120

110

100

90

•

In 2013: European producer profited from the recovery of the customer industries.

•

The positive trend gained momentum in the seconded half of 2014.

•

2015: Moderate upward trend.

Growth rates: 2013: +2.6% Est* 2014: +1.5% Est* 2015: 1.0%

80 2005

2006

Production index

2007

2008

2009

Average annual index

2010

2011

2012

2013

2014

2015

Forecast

Source: Eurostat, VCI, PlasticsEurope, *estimation for 2014 and 2015

31

Glossary of terms ABS ASA bn CH CIS Consultic ECEBD EU EPRO ETP GDP Mtonne NAFTA NO Other plastics PA PC PE PE-HD

Acrylonitrile butadiene styrene Acrylonitrile Styrene Acrylate billion Switzerland Commonwealth of Independent States Consultic Marketing & Industrieberatung GmbH Eastern and Central European Business Development European Union European Association of Plastics Recycling and Recovery Organisations Engineering Thermoplastics Gross domestic product Million tonnes North American Free Trade Agreement Norway Thermosets, adhesives, coatings and sealants Polyamide Polycarbonate Polyethylene Polyethylene, high density

PE-LD PE-LLD PE-MD PEMRG PET Plastics Materials PUR PMMA PP PS PS-E PTFE PVC SAN Thermoplastics

Polyethylene, low density Polyethylene, linear low density Polyethylene, medium density PlasticsEurope Market Research Group Polyethylene terephthalate Thermoplastics + Polyurethanes (PUR)

Polyurethane Polymethyl methacrylate Polypropylene Polystyrene Polystyrene, expandable Polytetrafluoroethylene Polyvinyl chloride Styrene-acrylonitrile Standard plastics (PE, PP, PVC, PS, EPS, PET (bottle grade)) + Engineering plastics (ABS, SAN, PA, PC, PBT, POM, PMMA, Blends, and others including High Performance Polymers) Thermosets Urea-formaldehyde foam, melamine resine, polyester resins, epoxy resins, etc UK United Kingdom VCI Verband der Chemischen Industrie e.V.

32

PlasticsEurope PlasticsEurope is the association of plastics manufacturers and one of the leading European trade associations with centres in Brussels, Frankfurt, London, Madrid, Milan and Paris. It is networking with European and national plastics associations and have more than 100 member companies, producing over 90% of all polymers across the EU28 member states plus Norway, Switzerland and Turkey.

European Association of Plastics Recycling and Recovery Organisations (EPRO) EPRO is the association of national organisations responsible for organising and promoting plastics recycling and recovery in Europe. EPRO provides a unique forum for leading European specialists in plastics waste management to exchange experience and ideas, develop integrated plastics packaging and agriculture waste strategies and support technological development.

3 33

01-2015 Avenue E. van Nieuwenhuyse 4/3 1160 Brussels – Belgium Phone +32 (0)2 675 32 97 Fax +32 (0)2 675 39 35 info@plasticseurope.org www.plasticseurope.org

Konigin Astridlaan 59 1780 Wemmel – Belgium Phone +32 (0)2 456 84 49 Fax +32 (0)2 456 83 39 info@epro-plasticsrecycling.org www.epro-plasticsrecycling.org

© 2015 PlasticsEurope. All rights reserved.

34